k Y d
BRVM
GSE
NSE
CBL Research West African Markets Review
17 February 2017 Edition
Trading Day GSE CI NSE All Share BRVM CI
Opening Closing Return (%) YTD (%) Opening Closing Return (%) YTD (%) Opening Closing Return (%) YTD (%)
Monday 1,805.09 1,806.96 0.10% 6.98% 25,340.02 25,244.29 -0.38% -6.07% 282.16 281.06 -0.39% -3.80%
Tuesday 1,806.96 1,813.47 0.36% 7.36% 25,244.29 25,032.17 -0.84% -6.86% 281.06 281.30 0.09% -3.72%
Wednesday 1,813.47 1,808.50 -0.27% 7.07% 25,032.17 25,130.26 0.39% -6.49% 281.30 281.43 0.05% -3.68%
Thursday 1,808.50 1,809.10 0.03% 7.11% 25,130.26 25,055.29 -0.30% -6.77% 281.43 281.84 0.15% -3.54%
Friday 1,809.10 1,809.47 0.02% 7.13% 25,055.29 25,164.91 0.44% -6.36% 281.84 281.76 -0.03% -3.56%
This Week in West Africa Market Snapshot
NSE ALSI and BRVM CI decreased 0.7%
and 0.1%, respectively during the
week. At the same time, GSE CI
increased 0.2% during the week. While
GSE CI and BRVM CI registered a
decrease in volume traded, NSE ALSI
registered an increase in the same
GHANA: GSE Composite Index increased by 0.2% in the current week to 1,809.47, compared to
previous week’s loss of 1.1%. The trading volume decreased over the previous week. The index
recorded 7.1% gain on YTD basis.
NIGERIA: NSE ALSI decreased by 0.7% during the week compared to previous week’s decrease of
1.8%. The index’s trading volume increased over last week. The index has lost 6.4% on YTD basis
compared to YTD loss of 5.7% at the end of previous week.
FRENCH WEST AFRICA: BRVM Composite Index decreased by 0.1% from previous week to 281.76
points, compared to previous week’s increase of 0.9%. The trading volume decreased over the
previous week. The index’s YTD loss was 3.6% at the end of current week.
CBL Research West African Markets Review
GDP (USD bn) 37.7
GDP growth 3.88%
GDP per Capita (USD) 1,401.7
BoG Policy Rate 25.50%
GHS/USD 4.3750
GHS/GBP 5.4357
GHS/EUR 4.6533
Inflation 13.30%
91-Day T-Bill 15.69%
182-Day T-Bill 17.00%
1-Year T-Bill 19.00%
Total Reserves (USD bn) 5.9
Total Debt (USD bn) 28.3
Market Name Ghana Stock Exchange (GSE)
Major Indices GSE Composite Index
Other Index GSE Financial Stocks
Index (GSE FSI)
Listed Stocks Thirty Five (35)
Trading days Monday – Friday
Trading Hours 10.00hrs GMT – 15.00hrs GMT
Trading Day Market Index (GSE CI) Change (%) Market Cap
Previous Current Daily Year-to-Date GHS m USD m
Monday 1,805.09 1,806.96 0.10% 6.98% 52,191.84 11,935.02
Tuesday 1,806.96 1,813.47 0.36% 7.36% 52,433.68 11,989.22
Wednesday 1,813.47 1,808.50 -0.27% 7.07% 52,201.71 11,935.37
Thursday 1,808.50 1,809.10 0.03% 7.11% 52,205.51 11,934.33
Friday 1,809.10 1,809.47 0.02% 7.13% 52,207.86 11,933.23
1,400
1,500
1,600
1,700
1,800
1,900
2,000
2,100
2,200
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17
CBL Research West African Markets Review
Economic Snapshot Market Snapshot Ghana
6M Performance Chart
Company/Organization Event Date
No event
Company DPS (GHS) DPS (USD) Qualifying Date Payment Date
SCB Preference
0.0714 24-Feb-2017 30-Mar-2017
SPL 0.001 31-Jan-2017 28-Feb-2017
15.0%
10.0%
75.0%
Gainers
Losers
Unchanged
CBL Research West African Markets Review
An average of 0.4 million shares per day valued at GHS 1.4 million traded
during the week compared to 31.3 million shares valued at GHS 45.7 million
that traded during the previous week.
Monday recorded the biggest turnover and the biggest value traded for the
week as the deals made up for 61.0% and 53.2% of the total weekly market
volume and value traded respectively.
The market breadth for current week was positive with 15.0% of the total
active shares increased and 10.0% decreased during the week. The remaining
75.0% of the total active stocks were unchanged from the previous week.
GSE Composite Index increased by 0.2% in the current week, to 1,809.5 points
from 1,805.1 in the previous week, representing a 7.1% gain on YTD basis.
The shares of Ghana Commercial Bank Ltd. increased 1.6% during the week to
GHS 4.33 from GHS 4.40 last Friday.
The index’s market cap increased by 0.1% to GHS 52,207.9 million (USD
11,933.2 million) from GHS 52,179.0 million in the last week.
The shares traded during the week decreased by 98.8% from previous week
to 1.8 million from 156.7 million in the last week.
The value of transactions in the week decreased by 96.9% to GHS 7.1 million
(USD 1.6 million) from the previous week’s value of GHS 228.4 million.
Market Wrap
Event Schedule Market Strength
Dividend Announcement
CBL Research West African Markets Review CBL Research West African Markets Review
Trading Day Volume Value (GHS) Value (USD) Transactions Active Equities Gainers Losers Unchanged
Monday 1,125,376 3,780,861 864,592 47 12 2 1 9
Tuesday 81,694 56,717 12,969 38 11 2 0 9
Wednesday 338,855 3,031,136 693,037 66 15 3 1 11
Thursday 265,002 195,960 44,797 31 13 2 0 11
Friday 33,668 39,935 9,128 61 10 1 1 8
0
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CBL Research West African Markets Review
CBL Research West African Markets Review
This week in Ghana
Ghana's cash deficit hits 9.0% of GDP
The IMF team led by, Mr. Joel Toujas Bernate, has indicated that Ghana is still
facing challenges. A team from the IMF visited Accra from February 6 to February
10, 2017, to review the 2016 economic performance and the gauge the outlook
for 2017. The team pointed out that the country’s overall fiscal deficit position
(on a cash basis) worsened to about 9% of GDP, instead of declining to 5.25% of
GDP as set under the IMF programme. The team stated that this deterioration
was caused by poor oil and non-oil revenue performance and expenditure
overruns. This also added to the government’s debt, taking the debt-to-GDP ratio
to about 74% of GDP at end-2016. Despite the fiscal deficit deterioration, IMF is
expected to approve the next tranche of support to Ghana.
http://peacefmonline.com/
Ghana's cocoa production revised to 800,000 tonnes
The new head of Ghana COCOBOD, Joseph Boahen Aidoo, has revised the cocoa
production in Ghana to 800,000 tonnes of cocoa for 2016/17 season from earlier
estimate of 850,000-900,000 tonnes. Mr. Aidoo replaced Mr. Stephen Opuni as
the new head of COCOBOD from January 7. Mr. Opuni was widely criticized by
both farmers and traders alike for the lack of transparency in his management of
the industry. He said that the cocoa production currently stands at around
600,000 tonnes and expects to add around 200,000 tonnes more during the
season. Mr. Aidoo assured that he is making efforts to improve farming practices
and support growers and buyers to increase the country's cocoa production to
above 1 million tonnes annually.
http://www.nasdaq.com/
Government to negotiate ECF program with the IMF
The Minister of Monitoring and Evaluation, Dr. Anthony Akoto Osei, has
indicated that the government of Ghana is negotiating with the International
Monetary Fund (IMF) to extend the Extended Credit Facility (ECF) program to
December 2018 from the original target of April 2018. During its visit, the IMF
team appreciated NPP’s plans to cut down or eliminate some taxes, restore fiscal
discipline, promote debt sustainability and support private sector development.
Successful implementation can help reduce fiscal slippages in Ghana. The fund
also welcomed the new government’s intention to conduct a full audit of
outstanding obligations.
https://citifmonline.com/
Implementation of Deposit Protection Act to commence in the second quarter
of the year
The Chief Manager of Banking Supervision Department of BoG, Mr. Ismail Adam,
has served a notice that the bank will begin the implementation of the Ghana
Depository Protection Act, 2016 (Act 931) in 2Q 2017. The act was passed by
parliament in 2016 to protect depositors from loss of funds. The law, which was
formed in the wake of DKM Microfinance debacle, offers GHS 6,250 in
compensation to depositors whose funds get locked up in financial institutions
during crisis. This will be paid by the Deposit Protection Fund Corporation.
http://www.businessghana.com/
Market Name Nigeria Stock Exchange (NSE)
Major Indices NSE All Share Index
Other Index NSE 30 Index (NSE 30)
Listed Stocks One Hundred Ninety-Three
(193)
Trading days Monday – Friday
Trading Hours 08:30hrs GMT – 13:30hrs GMT
GDP (USD bn) 493.8
GDP growth 2.65%
GDP per Capita (USD) 2763.1
Policy Rate 14.00%
NGN/USD 304.50
NGN/GBP 378.66
NGN/EUR 324.76
Inflation 18.72%
91-Day T-Bill 14.29%
182-Day T-Bill 19.76%
1-Year T-Bill 22.53%
Total Reserves (USD bn) 29.1
Total Debt (USD bn) 57.4
Trading Day Market Index (NSE AS) Change (%) Market Cap
Previous Current Daily Year-to-Date NGN bn USD bn
Monday 25,340.02 25,244.29 -0.38% -6.07% 8,736.57 28.69
Tuesday 25,244.29 25,032.17 -0.84% -6.86% 8,663.16 28.40
Wednesday 25,032.17 25,130.26 0.39% -6.49% 8,697.11 28.52
Thursday 25,130.26 25,055.29 -0.30% -6.77% 8,671.16 28.43
Friday 25,055.29 25,164.91 0.44% -6.36% 8,709.10 28.55
20,000
25,000
30,000
35,000
40,000
Aug/16 Sep/16 Oct/16 Nov/16 Dec/16 Jan/17 Feb/17
Economic Snapshot Market Snapshot Nigeria
CBL Research West African Markets Review
6M Performance Chart
Company/Organization Event Date
No event
Company DPS
(NGN)
DPS
(USD)
Payment Date
No dividend
16.4%
14.1%
69.5%
Gainers
Losers
Unchanged
Market Wrap
Event Schedule
Dividend Announcement
8,607.7 million (USD 28.2 million) compared to NGN 8,030.6 million recorded
in the previous week.
An average of 214.6 million shares valued at NGN 1,721.5 million traded on
each session of the week compared to 210.5 million traded shares valued at
NGN 1,606.1 million in the previous week.
Friday recorded the biggest turnover and the biggest value traded for the
week as the day’s deals made up for 44.7% of the weekly volume and 23.0%
of value traded respectively.
The market breadth was positive during the last week as 16.4% of the total
shares increased in value compared with 14.1% of the stock registering losses.
In the last week, 69.5% of the shares remained unchanged.
NSE All Share Index decreased by 0.7% on weekly basis (compared to 1.8%
decrease in the last week). The index ended the week at 25,164.91 points,
representing year-to-date loss of 6.4%.
The shares of Vitafoam Nigeria plc decreased 13.04% during the week
followed by Fidson Healthcare plc at 11.40%.
Market cap decreased during the week to NGN 8,709.1 million (USD 28.6
million) from NGN 8,769.70 million at the end of last week.
The trading volume increased by 2.0% over previous week to 1,073.1 million
from 1,052.4 million shares that traded in the previous week.
The value of transactions increased by 7.2% in the current week to NGN
Market Strength
CBL Research West African Markets Review
Trading Day Volume (m) Value (m NGN) Value (m USD) Transactions Active Equities Gainers Losers Unchanged
Monday 142 1,382 4.5 2,386 113 15 17 81
Tuesday 145 1,914 6.3 2,868 84 15 14 55
Wednesday 162 1,797 5.9 4,216 100 10 14 76
Thursday 144 1,535 5.0 2,303 104 17 17 70
Friday 480 1,979 6.5 2,713 99 21 10 68
0
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Trading Statistics
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CBL Research West African Markets Review CBL Research West African Markets Review
This week in Nigeria
Incidences of pipeline vandalism in Niger Delta decreased 58% MoM in
November 2016
The Nigerian National Petroleum Corporation (NNPC) stated in its monthly
Financial and Operations Report for December 2016, issued on February 16,
2017, Thursday that the incidences of pipeline vandalism reduced 58% MoM
in November 2016. The report disclosed that only 18 cases of vandalized
points on downstream pipelines were recorded in November 2016 compared
to 43 cases in October 2016. This reduction comes in the wake of efforts by
the federal government, which has been continuously engaging with the
leaders and stakeholders in the Niger Delta to ensure that oil and gas facilities
are secure. The corporation also reported a 13.4% MoM increase in oil and gas
sales in December 2016. The total export sale stood at US$ 195.4 million for
December 2016, compared to US$ 166.2 million recorded in November 2016.
http://allafrica.com/
USAID plans to infuse US$ 1 billion in Nigeria’s power sector
United States Agency for International Development, USAID, funded energy
initiative, Power Africa, has announced plans to infuse about US$ 1 billion in
the Nigerian power sector. The program coordinator for the USAID, Mr.
Andrew Herscowitz, said that the initiative is committed to strengthening
Nigeria’s energy supply situation. He added that, since the inception of Power
Africa, the agency has committed about US$ 6.5 million funding for 10
activities in Nigeria’s power sector, which could leverage up to investment of
US$ 2.7 billion in the sector.
http://www.vanguardngr.com/
CBN disbursed US$ 2.83 billion in December and January to support the
economy
The Central Bank of Nigeria issued a statement on Thursday stating that it has
disbursed US$ 2.83 billion in December and January to support critical sectors
of the economy which were hit by scarcity of foreign currency. The bank
believes the infusion of funds will kick start the economy and lessen the
scarcity of foreign currency. Nigeria's economy is enduring its first recession in
25 years due to low exports of the crude oil. This has also negatively impacted
the exchange rate of Naira. In addition, the lack of dollars due to government
restrictions has left businesses struggling to import overseas products they
need. The apex institution assured that it will continue working towards
easing the foreign exchange pressure on critical sectors to boost economic
activity and employment in the country.
http://www.cnbcafrica.com/
NNPC registers NGN 197 billion loss in 2016
The Nigerian National Petroleum Corporation (NNPC) stated in its monthly
operations and financial report for the month of December 2016 that the
corporation registered a trading loss of NGN 197 billion in 2016 fiscal year.
The report added that NNPC registered deficit in all months except May, when
it posted a profit of NGN 273.7 million. The company cited repeated pipeline
breaks and vandalism of oil assets as the reason for most of its losses.
http://allafrica.com/
CBL Research West African Markets Review
GDP (USD bn) 92.40
GDP growth 11.40%
GDP per Capita
(USD) 868.80
XOF/USD 615.92
XOF/GBP 765.23
XOF/EUR 655.96
Inflation -0.20%
91-Day T-Bill 3.92%
182-Day T-Bill 4.41%
1-Year T-Bill
Total Debt (USD
billion)
Market Name Bourse Régionale des Valeurs Mobilières
Major Indices BRVM Composite Index
Other Index BRVM 10
Listed Stocks Thirty-Nine (39)
Trading days Monday – Friday
Trading Hours 09:45hrs GMT – 15:00hrs GMT
Trading Day Market Index (BRVM CI) Change (%) Market Cap
Previous Current Daily Year-to-Date XOF bn USD bn
Monday 282.16 281.06 -0.39% -3.80% 7,423.70 12.03
Tuesday 281.06 281.30 0.09% -3.72% 7,430.13 12.03
Wednesday 281.30 281.43 0.05% -3.68% 7,433.39 11.96
Thursday 281.43 281.84 0.15% -3.54% 7,444.26 12.09
Friday 281.84 281.76 -0.03% -3.56% 7,442.25 12.08
200
220
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340
Aug/16 Sep/16 Oct/16 Nov/16 Dec/16 Jan/17 Feb/17
French West Africa Economic Snapshot Market Snapshot
CBL Research West African Markets Review
6M Performance Chart
Company/Organization Event Date
No events
Company DPS (XOF) DPS (USD) Payment Date
No dividends
43.2%
35.1%
21.6%
Gainers
Losers
Unchanged
Market Wrap
Market Strength Event Schedule
Dividend Announcement
The value of transactions for the week decreased by 31.6% to XOF 3,174.9
million compared to previous week’s XOF 4,639.6 million.
An average of 0.12 million shares valued at XOF 635.0 million traded on each
session of the week compared to 0.72 million shares valued at XOF 927.9
million that traded in the last week.
Tuesday recorded the biggest turnover and Thursday recorded the biggest
value traded for the week as deals made up for 39.4% of the weekly volume
and 26.6% of value traded respectively.
The market breadth was positive during the week with 43.2% of the stocks
increasing and 35.1% decreasing. The remaining 21.6% of the stocks
registered no change in price.
For the week under review, BRVM Composite Index decreased by 0.1% over
previous week, compared to previous week’s increase of 0.9%, closing the
current week at 281.8 points which represents 3.6% loss on YTD basis.
The shares of Societe d'Etudes et de Travaux pour l'Afrique de l'Ouest
decreased 14.4% during the week to XOF 28,240 from XOF 33,000 in the
previous week.
Market cap also decreased from previous week to end the current week at XOF
7,442.25 million (USD 12.1 million) from XOF 7,452.73 million in the previous
week.
During the week, shares traded decreased by 83.6% on weekly basis to 0.6
million from 3.6 million in the previous week.
CBL Research West African Markets Review
Trading Day Volume ('000) Value (m, XOF) Value (m, USD) Transactions Active Equities Gainers Losers Unchanged
Monday 60 734 1.2 569 37 9 18 10
Tuesday 233 400 0.6 544 36 13 9 14
Wednesday 32 526 0.8 416 34 10 12 12
Thursday 127 846 1.4 422 32 9 15 8
Friday 139 669 1.1 422 33 16 9 8
0
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Trading Statistics
Market Volume (Week-on-week) Market Value (Week-on-week)
CBL Research West African Markets Review
This week in BRVM
CBL Research West African Markets Review
Ivorian cocoa producers demonstrate downturn in sales in Abidjan and San
Pedro
Ivory Coast saw dozens of people demonstrating in Abidjan and San Pedro
against a slowdown in exports and a decrease in buying price. Meanwhile,
several tons of cocoa have piled up in warehouses. The Coffee-Cocoa Council
cited excess production in Ivory Coast and worldwide price reduction as the
reason for the slowdown of sales. Cocoa producers in the country are
requesting the government to activate an emergency fund on cocoa as
decline in cocoa prices has made it difficult for producers to sell the produce
at a respectable price.
http://www.foxnews.com/
Production to be halted for 18 months in the Kalana mine in Mali
Canadian Avnel Gold has announced that it will suspend production at its
Kalana underground mine in Mali for 18 months from June 2017 to expand
its operations and build a new processing plant. The company will start
construction of a new factory in July. The new mine will have a lifespan of 18
years and will produce 148,000 ounces of gold a year in the initial five years.
The construction is expected to cost about US$ 117 million. The production
will commence again in January 2019 at a larger, open-pit mine with
estimated gold reserves of 1.96 million ounces.
http://finance.yahoo.com/
Guinea-Bissau to raise XOF 13 billion through issue of one-year bond on
February 22
West Africa's debt planning agency AUT announced on February 14, 2017, that
Guinea Bissau will issue a one-year bond to raise XOF 13 billion (US$ 20.9
million). The bond will be issued with multiple interest rates on February 22,
2017. The bond will be sold in units of XOF 1 million to investors across the
francophone West African common currency zone.
http://www.reuters.com/
Symbol VANLEER NL
ISIN NGVANLEER005
Current Price (NGN/Sh.) 9.69
Year High (22-Feb-16) NGN 9.83/ US$
0.03
Year Low (22-Mar-16) NGN 9.23/ US$
0.03
Mkt Cap (NGN, mn) 413
Mkt Cap (USD, mn) 1.35
Issued Shares (mn) 43
Major Shareholder GREIF INTE
HOLDING B
Major Shareholding 51.03%
Revenue-FY 2016 (NGN,
‘mn) 999.2
Net Profit (NGN, ‘mn) 27.1
Total Assets (NGN, ‘mn) 722.5
Total Liabilities (NGN,
‘mn) 384.9
Total Equity (NGN, ‘mn) 337.6
Net Profit Growth 10.1%
EPS 0.6
Operating Margin 3.1%
RoA 3.8%
Net profit margin 2.7%
RoE 7.6%
P/E 15.2
P/B 1.2 8.90
9.00
9.10
9.20
9.30
9.40
9.50
9.60
9.70
9.80
9.90
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17
CBL Research West African Markets Review
Featured Stock – Greif Nigeria Plc
6M Price Performance Snapshot – Greif Nigeria Plc Key Data
Greif Nigeria Plc, formerly known as Van Leer Containers
(Nigeria) Plc till May 2004, is one of the major companies
operating in Industrial goods segment in Nigeria.
The company is involved in manufacturing and marketing of
metal drums and plastic containers. The company is also
engaged in production of sheet metal product and stainless
steel shape. In addition to the product offerings, the Company
also provides services such as punching and aluminum
welding.
Greif Nigeria Plc is a subsidiary of Greif International Holding
B.V. The company was incorporated in 1940 and has been
listed on Nigerian Stock Exchange since 1979 where it
trades under the ticker of Vanleer.
Company Profile
CBL Research West African Markets Review CBL Research West African Markets Review
The Team
David Ganesha Tetteh, CEO [email protected]
Nana Agyei Opoku-Agyemang, Analyst [email protected]
Adelaide Opoku Addo, Analyst [email protected]
Contact
Accra Office
6th Floor, World Trade Centre, Ridge Accra
+233 302 680 051
+233 289 553 171
New York Office
19 West 44th Street, Suite 1700 New York, NY 10036
+1 646 454 8688